Moody's upgrades Inovyn

Moody's Investors Service said it upgraded Inovyn Ltd.'s corporate family rating and probability of default rating to B1 from B2 and B1-PD from B2-PD, respectively.

The agency also said it upgraded the rating on the senior secured term loan facilities due 2021 and 2024 to B1 from B2, along with the rating of the senior secured notes due 2021 to B1 from B2.

The senior secured term loan facilities are borrowed by Inovyn's subsidiary, Inovyn Finance plc.

The outlook is stable.

Inovyn has launched a re-pricing of its senior secured term loan facilities and upsizing of its senior secured term loan B from about €690 million to €830 million.

The proposed €140 million upsize, together with cash on the balance sheet, will be used to finance the early redemption of the €240 million senior secured notes due 2021, Moody's said.

The rating on the senior secured notes will be withdrawn upon closing of the transaction.

The upgrades reflect the company's better-than-expected operating performance since the start of the year and a view that the company should be able to maintain its credit metrics at current levels and build up substantial amount of cash over the next 12 months, which could be used to further reduce its gross debt, Moody's explained.

The proposed early redemption of the senior secured notes, together with the increase of the term loan B, also should result in a 0.5x decrease of the company's adjusted gross debt-to-EBITDA ratio to 2.5x based on the last 12 months to June 2017, the agency said.

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